Nippon Life India Asset Management Limited (NAM India), the asset manager for Nippon India Mutual Fund (NIMF), announces the launch of the Nippon India Nifty 500 Equal Weight Index Fund. This open-ended scheme is designed to replicate or track the Nifty 500 Equal Weight Index.
The fund offers a unique investment opportunity by providing exposure to a broad array of 500 companies, each with an equal weight in the portfolio. This approach helps reduce concentration risk typically seen in market capitalization weighted indices and allows investors to tap into the growth of the broader Indian market.
Investors looking to benefit from India’s growth story should consider a diversified market exposure, including large, mid, and small-cap companies, which can drive long-term growth. The Nifty 500 Equal Weight Index is well-diversified, covering 500 stocks across 21 sectors. It includes 20% large-cap stocks, 30% mid-cap stocks, and 50% small-cap stocks.
The New Fund Offer (NFO) opens on August 21, 2024, and closes on September 04, 2024. The minimum investment during the NFO is Rs 1000, with subsequent investments in multiples of Re 1. The fund’s performance will be benchmarked against the Nifty 500 Equal Weight TRI.